Ocean freight is one of the most widely used and cost-efficient means of transporting large shipments across the globe since the advent of international trade. Measuring your shipment right is an important concept whether you are shipping loads full containers or smaller loads consolidated with less-than-container load (LCL) services. Such a measurement not only fixes the cost of shipping but also makes sure that it meets both logistics and customs demands. Among the basic formulas that a person should study in this process is CBM in Shipping or Cubic meter measurement. The unit of measure as it relates to cargo volume has been settled on as CBM and it aids in the calculation of space and prices, which freight forwarders and carriers use during pricing and quoting. Measurement errors may cause delays, cost increments, or rejection of shipment.
This article will take you through the step-by-step process of measuring your ocean freight shipments correctly, so you can make your logistics process efficient and avert the most common errors.
Understand the Importance of Measurement
It is essential to know why it is imperative to measure before you immerse yourself in math and measurements. Precise packaging of ocean freight prevents several things:
Cost estimation: Freight costs are typically calculated on either weight or volume whichever is higher.
Container planning: There is proper use of containers which results in maximum usage.
Customs records: Information that must be recorded properly to comply with relevant issues.
Preventing fines: Misreporting cargo dimensions may lead to paying additional money or a rejection of a shipment.
When it comes to getting the correct measurements on your cargo, take your time and consider the stress-free shipping done without extra expenses.
1. Know What CBM is in Shipping
It is done by numbering the length x width x height of your package (in meters).
Freight is not always charged per weight, it is commonly charged on the volume (CBM) that the goods take in the vessel liners.
It decides the space taken by your goods in the shipping container.
The use of CBM in shipping assists the logistics provider in the efficient planning of container space.
When CBM goes beyond a designated limit of your consignment one can term it bulky and different charges might be imposed. Thus, proper CBM calculation is the most important and the initial measure when it comes to ocean freight measurement.
Key Takeaways
1.Ocean freight is generally charged by volume (CBM) or weight of the goods.
4.Knowing what the correct measure of your cargo is can save loads of money that you will pay to ship it.
5.Proper measurements bring down the chances of overcharges, repatriation of cargo, and customs problems.
How to know Ocean Freight Charges
. It is more economical compared to air freight especially when the consignment is large; however, it has its calculations. You have to know the basics to have an idea of how you are charged:
The freights are usually computed either on the weight/or on the volume (whichever is heavier).
Other expenses could be fuel markup, custom duties, port handlings, and insurance.
When you need to ensure that you are not overpaying for the space you do not need, it is important to be able to properly calculate your CBM of the shipment.
The Elements of Freight Rates in the Ocean
In order to appreciate how to measure your ocean freight you should also find out what constitutes the sum totals of the freight price. The following are the main parts:
1. The cost of ocean freight charge will be based.
The main charge that the carriers apply is either on the basis of weight or CBM.
2. Fuel Surcharge (BAF)
The variable cost of fuel.
3. Currency Adjustment Factor (CAF)
Coverage against the risk of fluctuations in currency exchange.
4. Terminal handling charges (THC)
5. Documentation Fees
Fees on presenting the Bill of Lading and other documentation.
6. Security Fees
There were port security charges and container examination charges.It understands what to expect so that you can negotiate the best shipping prices and develop an effective shipping budget.
Conclusion
International logistics depends on measuring ocean freight shipments as a primary principle to promote transparency, cost-effectiveness, and compliance. Learning how CBM can be used in shipping, comprehending how to learn specific measurements and calculations, and acquiring this knowledge will help you efficiently manage your freighting and avoid shocking you with cost and space delivery.
Regardless of whether you are a business owner who is exporting products on a regular basis or a logistics specialist who has to manage international transportation, this step-by-step guide will help you to save time and effort, to avoid penalties, and to get as much container space as possible.
Following these best practices and using the appropriate tools consistently will help you maneuver around the ocean freight world with a lot more confidence and precision.
